The International Energy Agency calls for urgent reopening of the strait of Homuz amid ongoing pressure on global oil supplies The International Energy Agency has warned oil stockpiles are rapidly depleting, increasing the urgency around reopening the strait of Hormuz. The IEA explained in a new report that observed stocks had fallen below 7.9 billion barrels for the first time since April 2025: Although the market is projected to return to surplus towards the end of this year, risks remain substantial and the urgency of reopening the Strait has increased, as previously available inventory buffers are rapidly depleting. With an agreement enabling the reopening of Hormuz and unhindered transit through the Bab el-Mandeb Strait still elusive, we have again lowered supply estimates for the rest of the year. Global oil supply is now forecast to fall by 4.3 mb/d in 2026, to 102 mb/d, as growth of 1.4 mb/d from the Americas only partly offsets losses in the Middle East and Russia. The renewed hostilities between the US and Iran suggest that a long-term reduction in shipping through the strait of Hormuz is now the most likely scenario. It isn’t in the interests of the US or Iran to keep the Strait of Hormuz permanently closed. But mutual deep distrust and an unwillingness by either party to make large concessions mean a lasting deal is unlikely to be reached and maintained anytime soon. Continue reading...